Broadband compensation and service failure

Last reviewed: 22 March 2026

If your broadband installation or repair is delayed, or an engineer misses an agreed appointment, you may be entitled to automatic compensation from your provider. Since 2019, Ofcom's automatic compensation scheme has required participating providers to pay customers fixed amounts for specific failures, without the customer needing to ask. This guide explains exactly what the scheme covers, which providers take part, and what steps to follow if something goes wrong with your broadband service.

At a glance

Ofcom's automatic compensation scheme means you are paid without having to file a formal complaint.
Compensation covers delayed repairs after a total loss of service, delayed starts to new services, and missed engineer appointments.
Major providers including BT, EE, Sky, TalkTalk, Plusnet, Hyperoptic and Zen participate in the scheme.
If your provider is not in the scheme, you can still complain and escalate to an alternative dispute resolution (ADR) service.
The scheme does not cover slow speeds, Wi-Fi issues inside your home, or planned maintenance windows.

What Ofcom's automatic compensation scheme covers

The scheme was introduced by Ofcom on 1 April 2019 to ensure that broadband and landline customers receive fair, timely payouts when things go wrong. Under the scheme, compensation is automatic, so participating providers must credit your account or issue a payment without you having to chase them. Three categories of failure are covered:

Issue	Compensation amount	When it applies	How it is paid
Delayed repair after total loss of service	£9.33 per calendar day	When your broadband or landline stops working entirely and is not repaired within two full working days of being reported.	Credited to your account automatically, or paid by cheque or bank transfer if you leave the provider.
Delayed start of a new service	£5.25 per calendar day	When your new broadband service is not activated by the date promised by the provider at the point of sale.	Credited to your first or next bill, or issued as a standalone payment.
Missed appointment	£26.24 per missed appointment	When an engineer fails to arrive during the agreed time slot, or the appointment is cancelled with less than 24 hours' notice.	Credited to your account within 30 calendar days of the missed appointment.

These amounts are set by Ofcom and reviewed periodically. Compensation accrues for each full calendar day of delay, starting from the day after the two-working-day repair window expires (for loss of service) or the day after the promised activation date (for delayed starts). Missed-appointment compensation is a one-off payment per occurrence.

Which providers participate

The automatic compensation scheme is voluntary, but the majority of the UK's largest broadband providers have signed up. As of 2026, participating providers include:

BT (including BT Broadband and BT Business)
EE
Hyperoptic
Plusnet
Sky
TalkTalk
Zen Internet

Several smaller and regional providers have also joined the scheme. Ofcom maintains an up-to-date list of signatories. Because participation is voluntary, some providers, including Virgin Media O2, operate their own compensation policies rather than using the Ofcom scheme. If you are unsure whether your provider participates, check its terms and conditions or contact its customer service team.

What to do if you experience a service failure

Follow these steps to make sure you receive any compensation you are owed and to protect your position if you need to escalate.

Report the fault immediately. Contact your provider by phone, online chat, or through its app as soon as you notice a total loss of service or a missed appointment. Note the date, time, and the name or reference number of the person you speak to.
Keep a written record. Save confirmation emails, chat transcripts, and fault reference numbers. Record the dates your service was down and any appointment windows that were agreed.
Check whether your provider participates in the scheme. If it does, compensation should be applied to your account automatically within 30 calendar days. You should not need to ask for it.
Follow up if compensation does not appear. If you do not see a credit on your bill within 30 days, contact your provider and quote the fault reference. Ask for confirmation that the automatic compensation scheme applies to your case.
Raise a formal complaint if needed. If your provider refuses to pay or disputes the circumstances, submit a formal complaint through its official complaints procedure. The provider must issue a final response within eight weeks.
Escalate to ADR. If you are not satisfied with the outcome, or if eight weeks pass without a final response, you can take your complaint to an alternative dispute resolution service, either the Communications Ombudsman or CISAS, depending on which service your provider is registered with.

What if your provider is not in the scheme

If your broadband provider has not signed up to Ofcom's automatic compensation scheme, you are not left without options. All regulated telecoms providers in the UK must have a complaints procedure and must be registered with an ADR scheme.

Start by raising a formal complaint directly with your provider. Explain the issue clearly, include dates and evidence, and ask what compensation the provider is willing to offer. If the provider does not resolve your complaint within eight weeks, or if it issues a deadlock letter, you can refer the case to ADR free of charge.

The two ADR bodies for telecoms complaints in the UK are:

Communications Ombudsman: used by providers such as Virgin Media O2, Three, and Vodafone.
CISAS (Communications & Internet Services Adjudication Scheme): used by providers such as Sky and Utility Warehouse.

ADR services can award compensation, direct a provider to take action, or uphold the provider's position. Their decisions are binding on the provider but not on you, so if you disagree, you can still pursue the matter through the courts.

What automatic compensation does not cover

The Ofcom scheme is narrowly focused on specific, measurable service failures. It does not cover every broadband problem you might experience. The following are not included:

Slow speeds. If your broadband is working but slower than expected, the automatic compensation scheme does not apply. However, if your speed falls below the minimum guaranteed speed in your contract, you may have grounds to exit your contract penalty-free under Ofcom's codes of practice.
Wi-Fi and home network issues. Problems caused by your router's Wi-Fi signal, interference from other devices, or the layout of your home are outside the scope of the scheme. These are generally treated as customer-side issues.
Planned maintenance. Providers are entitled to carry out network maintenance, which may cause short outages. If you are given reasonable advance notice, these interruptions do not qualify for compensation.
Partial outages or intermittent faults. The scheme specifically covers a total loss of service. If your connection drops intermittently but is not completely down, the provider may not treat it as qualifying, though you can still complain and seek a goodwill gesture or contract exit.

Common questions

Do I need to ask for automatic compensation?

No. If your provider participates in the scheme, it is required to identify qualifying failures and apply compensation to your account without you needing to request it. In practice, it is worth checking your bill to confirm the credit has been applied, and following up if it has not.

How long does it take to receive the payment?

Participating providers must apply compensation within 30 calendar days of the issue being resolved. For delayed repairs, this means within 30 days of your service being restored. For missed appointments, it means within 30 days of the missed visit.

Can I claim compensation and still switch provider?

Yes. Receiving automatic compensation does not prevent you from switching. If you leave your provider before the credit appears on a bill, the provider should issue payment by another method, such as a cheque or bank transfer. A service failure that breaches your contract may also give you grounds to leave without paying early termination charges.

What if my provider says the fault was outside its control?

Providers may argue that certain faults, such as damage caused by third parties or extreme weather, fall outside the scheme. However, Ofcom's rules place the obligation on the provider to restore service within the specified timeframe regardless. If you disagree with your provider's assessment, escalate through the formal complaints process and, if necessary, to ADR.

Does the scheme apply to business broadband?

The automatic compensation scheme primarily applies to residential customers. Business customers may have separate service-level agreements (SLAs) with their provider that include their own compensation terms. Check your business contract for details.

What to do next

Visit the switching hub for step-by-step help changing your broadband provider.
Use our broadband switch checklist to make sure you do not miss anything during the process.
Compare broadband deals to find a better offer in your area.

Source: Ofcom: Automatic compensation, what you need to know. Compensation amounts and provider participation are subject to change; check Ofcom's website for the latest figures.